Global stock markets slid on Friday as investors grow concerned about the economic outlook for next year and a looming US government shutdown.The latest US data failed to comfort those worries, with a slight increase in the Federal Reserve’s preferred gauge of inflation.The Fed this week trimmed US borrowing costs but signalled fewer cuts than had been expected for 2025 as inflation remains sticky above its two percent target.The personal consumption expenditures (PCE) price index rose 2.4 percent in the 12 months to November, up from 2.3 percent in October, the Commerce Department said in a statement.The core measure that excludes highly volatile food and energy prices stayed steady at 2.8 percent.”The key takeaway from the report is that there wasn’t any improvement in the year-over-year readings for PCE and core-PCE inflation,” said Briefing.com analyst Patrick O’Hare.He noted that on Wednesday “the Fed implied with its words and guidance that further rate cuts can wait until there is more progress on inflation.”Stronger-than-expected US economic growth data on Thursday did nothing to dispel concerns that the central bank will keep rates higher for longer.”This is bad news for the US economy, because higher interest rates over a prolonged period are a huge drag on growth,” said CMC Markets analyst Jochen Stanzl.”Equity markets have started to price in lower growth in 2025, when the Fed will still be trying to reach its 2 percent inflation target,” he added.New York’s main indices opened lower on Friday, with the Dow sliding 0.4 percent.European stocks were down more than one percent in afternoon trading, with data showing tepid retail sales in the UK in the runup to Christmas dampening sentiment.Investors are keeping a watch also on developments in Washington.The House of Representatives has rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash Friday night and cease operations from this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.O’Hare noted US Treasury yields fell overnight, “driven by some safe-haven trading that stemmed from the ongoing weakness in the stock market and heightened political uncertainty” following the rejection of the government funding bill.Oil prices, which have also fallen since the Fed’s Wednesday announcement, slid lower.- Key figures around 1430 GMT -New York – Dow: DOWN 0.4 percent at 42,154.39 points New York – S&P 500: DOWN 0.5 percent at 5,836.34New York – Nasdaq Composite: DOWN 0.9 percent at 19,196.25 London – FTSE 100: DOWN 1.1 percent at 8,016.53Paris – CAC 40: DOWN 1.1 percent at 7,214.44 Frankfurt – DAX: DOWN 1.3 percent at 19,716.14Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)Euro/dollar: UP at $1.0391 from $1.0364 on ThursdayPound/dollar: UP at $1.2545 from $1.2496Dollar/yen: DOWN at 156.41 yen from 157.35 yen Euro/pound: UP at 83.83 pence from 82.91 penceWest Texas Intermediate: DOWN 0.8 percent at $68.85 per barrelBrent North Sea Crude: DOWN 0.7 percent at $72.39 per barrelburs-rl/lth